Oct. 2 (Bloomberg) -- Egypt’s shares rallied the most in almost a week as local newspapers reported the ruling military council agreed on a timetable to transfer power.
Orascom Construction Industries, the country’s biggest publicly traded builder, rose 1.7 percent. Cairo Poultry Co. soared to the highest in almost a week after EFG-Hermes Holding SAE raised the company to “buy.” The benchmark EGX30 Index gained 1.4 percent, the most since Sept. 26, to 4,193.96 at the 2:30 p.m. close in Cairo. The gauge lost 23 percent in the third quarter.
The military agreed to amend the elections law to allow political party candidates to run for seats set aside for independents, Al Ahram newspaper reported. Presidential elections will take place 45 to 60 days after a constitutional referendum, it said. Several thousand protesters rallied in Cairo on Sept. 30 to demand the ruling military council end a state of emergency and announce a time frame.
“The protests were peaceful with no violence reported and the Supreme Council of the Armed Forces has taken some decisions to ease public anger,” said Wafik Dawood, director of institutional sales at Cairo-based Mega Investments Securities.
Egypt is due to hold parliamentary elections in November as former president Hosni Mubarak is being tried on charges of corruption and involvement in the killing of protesters during the uprising that ended his three-decade rule.
Orascom Construction rose to 216.63 Egyptian pounds.
Cairo Poultry, a producer of chicken products, gained 2 percent to 10.32 pounds, the highest since Sept. 26. “The limited downside risk to Egyptian consumer stocks’ operations makes the sector one of the most resilient in the current environment,” EFG-Hermes said in a note dated Oct. 1.
In the Persian Gulf, Dubai’s DFM General Index lost 0.1 percent as the value of traded shares tumbled to 30.2 million dirhams ($8.2 million), the lowest since August 2004. Abu Dhabi’s ADX General Index gained 0.1 percent.
“Investors are on the sidelines on concern that European sovereign debt problems could have negative implications on the United Arab Emirates banking sector,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “The two consecutive drops in bank deposits and the size of these deposit withdrawals indicate that foreign depositors aren’t renewing their maturing deposits.”
U.A.E. deposits fell 3.2 percent to 1,078 billion dirhams in August as the European sovereign debt crisis intensified, the country’s central bank said on its website Sept. 29. Specific provisions for bad loans rose 1.7 percent in August from July to 49.2 billion dirhams, the data shows. Deposits in July dropped 1.1 percent.
Dubai Islamic Bank PJSC, the biggest Shariah-compliant lender in the emirate, declined 1.5 percent, the most since Aug. 8, to 1.95 dirhams. Abu Dhabi Commercial Bank, the third-biggest bank in the U.A.E. by assets, retreated 0.7 percent to 2.91 dirhams, the lowest since Aug. 24.
Bahrain’s BB All Share Index advanced 1 percent, snapping a six-day drop, and Kuwait’s gauge gained 0.1 percent. Oman’s MSM 30 Index and Saudi Arabia’s Tadawul All Share Index decreased 0.1 percent and Qatar’s QE Index declined 0.4 percent.
Israel’s TA-25 Index slumped 2.2 percent. Government bonds rose, with the yield on the benchmark 5 percent Mimshal Shiklit notes due January 2020 dropping four basis points, or 0.04 percentage point, to 4.43 percent.
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--Editors: Claudia Maedler, Shanthy Nambiar
-0- Oct/02/2011 14:57 GMT
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